How to set a minimum service charge
A practical way to work out the smallest job worth driving to.
Work out your minimum
- Add up the fixed costs of a visit. Drive time, fuel, truck wear, scheduling and paperwork all happen even on a small job.
- Set a time floor. Decide the shortest billable block, for example the first hour.
- Add a margin. Include the profit you want, not just your costs.
- Write it on the quote. Say plainly what the minimum covers so there are no surprises.
- Review twice a year. Fuel and labor change, so your minimum should too.
Common questions
Should the minimum include the diagnosis?
Many contractors include it. Whatever you choose, state it before the visit.
Can I waive it?
Some do for repeat customers. Decide a rule so it is applied fairly.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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